CENORED Battery Storage Analysis | Phase II Final Report (Draft)

The CENORED Battery Storage Analysis, Phase II Final Report, was prepared by Deloitte Consulting LLP under Contract Number AID-674-C-17-00002. The report identifies six potential barriers to battery storage deployment in Namibia, including an evolving electricity market structure and a lack of explicit regulations that account for battery storage technologies. These barriers may not necessarily prevent a battery storage deployment, but obtaining clarity on how the electricity market and regulator will treat battery storage technologies is crucial for both CENORED and developers. The analysis breaks down the project lifecycle and its components to understand leading practices associated with a battery storage project. This includes ownership and contract structure selection, procurement leading practices review, and refined cost-benefit analysis. The report highlights the importance of clear technical requirements, performance guarantees, warranties, and finance and funding requirements in the procurement process. A refined cost-benefit analysis was conducted for three selected sites: Tsumeb, Okahandja, and Otjiwarongo. The analysis evaluated the technical and economic feasibility of battery energy storage systems (BESS) at these sites, considering factors such as cost, benefits, and potential impacts on the electricity supply industry. The report concludes that while battery storage deployment in Namibia faces several challenges, it is not impossible. The analysis provides recommendations for CENORED and developers to overcome these challenges and successfully deploy battery storage technologies in Namibia. These recommendations include obtaining clarity on the electricity market and regulatory environment, adopting leading procurement practices, and conducting thorough cost-benefit analyses. The report highlights the importance of battery storage technologies in supporting the growth of renewable energy in Namibia. The analysis provides a comprehensive understanding of the challenges and opportunities associated with battery storage deployment in Namibia, and serves as a valuable resource for stakeholders in the energy sector. The CENORED Battery Storage Analysis, Phase II Final Report, provides a detailed assessment of the technical and economic feasibility of battery energy storage systems in Namibia. The report's findings and recommendations will inform decision-making and support the development of battery storage projects in the region.